Anthony Scaramucci believes that Bitcoin could experience new price drops, which would lead to volatility in the most popular cryptocurrency.
The SkyBridge Capital CEO revealed he won’t be buying the dip, even as BTC price retreats from highs of $44,400.
He notes that Bitcoin is still an “early adoption story” and believes its price will grow long-term.
Anthony Scaramucci CEO of SkyBridge Capital believes Bitcoin is heading for greater volatility. But he says long-term holders will still be financially profitable in the face of increased adoption and usage of the cryptocurrency.
This was noted by SkyBridge’s chief in an interview with CNBC’s “Crypto Night in America” on Thursday.
Bitcoin price dropped to $40,000 earlier this week but has rallied in the last three days and climbed to $44,400. Digital gold also lost support at $41,790 due to the weakness of the wider stock markets.
While many analysts remain bullish for the cryptocurrency long term, there are suggestions Bitcoin’s “lockstep” trading with traditional stock markets could see it dip further, with investor sentiment likely weighed by the Fed’s tightening cycle.
Scaramucci was questioned by The New York Times about his thoughts on the future of Bitcoin prices after the plunge from $69,000 in November.
He acknowledged the decline in BTC values and told CNBC that he expected more consolidation.
“I definitely think there is a lot of leverage in the system and there’s been massive deleveraging,” he explained.
He suggested that some of the market’s sloppiness was due to China’s crackdown last year. Many holders will likely be flushed by Chinese exchanges at 2021, after the ban on crypto trading.
Scaramucci also spoke out about his company’s plans during this current Bitcoin price dip, suggesting that the firm would never buy the dip.
He noted that SkyBridge had “bought on the fringe a little and added to [its]Exposure to multi-coins and Polygon. However, it wasn’t planning to add any more or take away from its substantial Bitcoin stake, he added.
On the issue of Bitcoin volatility, the SkyBridge chief said he sees the market experiencing “some sloppiness and waves of volatility. This should see investors jump on and off the market, which is expected as Bitcoin is an “early technology adoption story.”
Even then, Scaramucci is bullish on Bitcoin’s long-term outlook and believes long-term holders will do well.
Bitcoin traded at $42,486, down about 4 percent in intraday transactions and almost 10% over the past 2 weeks.